What is a Flexible Spending Account (FSA)?

A flexible spending account, often abbreviated FSA, is a special account that allows you to set aside money for medical expenses. The money in the account cannot be taxed, in fact, to fund your FSA your employer takes money out of your paycheck before taxes and deposits it into your FSA. That money can then be used to cover medical expenses that otherwise would have to be paid out of pocket. Money in this account can also be used to cover expenses for your spouse and dependents. 

The most important thing to remember when it comes to your FSA is that you have to use the money by the end of the year or it is returned to your employer. Luckily, the FSA Store sends reminders throughout the year. Your employer also can opt to give you a 2.5 month grace period or allow you to carry over $550. 

Qualified Medical Expenses

The money in an FSA account can only be used on the medical expenses that are qualified according to the IRS. More and more expenses every year are being added to that list. Here’s a list of some expenses that qualify (some might surprise you):

  • Eye Care Eye exams, glasses, and contact lenses are all qualified expenses. Ideally, you should have an eye exam every six months to a year to check your vision and check to make sure there are no underlying health issues. 
  • Dental Routine dental procedures like teeth cleaning, fillings, and root canals are all expenses that can be paid for out of your FSA. However, cosmetic procedures like teeth whitening are not included.
  • Co-pays Co-payments for your primary care physician as well as specialist visits are qualified expenses. 
  • Medication This includes not only prescription medications, but also pain relievers and other over-the-counter medications, bandages, and even thermometers.
  • Birth Control Call your doctor for a prescription if you need birth control. Condoms and pregnancy tests may also qualify.
  • Skin Care Acne treatment and skin care products are covered under most circumstances. 
  • Ancestry Reports Some of your health problems may be linked to your genetics and because of this, ancestry reports that include health reports can be a qualified expense. 
  • Feminine Hygiene Products Pads and tampons are some of the more recent items included on the qualified medical expenses list. 
  • Sunscreen Sunscreen with an SPF above 15 can be covered by your FSA, since protecting your skin is very important to your health. This can also include moisturizers with SPF. Even if it’s winter, go ahead and stock up. Sunscreen can last for up to three years before expiring.

A flexible spending account can help a lot with medical expenses. If you have questions about how you can use your FSA here at JCMC, contact us today.